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Nuclear Solutions Subsidiary Receives $2M Commitment to Fund Plasma Reactor CTL Plant

Fuel Frontiers, Inc. (FFI), a subsidiary of Nuclear Solutions, Inc. has received a $2-million commitment to fund initial project development for a CTL (Coal-to-Liquids) diesel fuel production facility to be sited in Muhlenberg County, Kentucky.

Cross-section of Westinghouse plasma reactor. Click to enlarge.

Initially, FFI focused on developing waste-to-fuel to produce synthetic ethanol. Earlier this year, the company shifted the fuel production target to synthetic diesel, retained Westinghouse Plasma Corporation (WPC) for the design and engineering of a plasma gasification system, and selected Shaw Stone & Webster (SS&W) as the plant Engineer-Constructor.

WPC has developed a number of pilot and commercial plants for the gasification and/or vitrification of MSW (municipal solid waste), ASR (auto shredder residue), biomass and other industrial liquid and solid wastes in a plasma reactor. The plasma reactor converts the feed into a syngas primarily containing CO and H2.

FFI plans to use the WPC plasma gasification systems coupled to commercially available Fischer-Tropsch (FT) diesel fuel production systems.

The $2-million funding commitment is in connection with an exclusive CTL diesel fuel project development agreement between FFI and Kentucky Fuel Associates, Inc. (KFA), a Kentucky-based corporation established specifically to develop coal-based diesel fuel production sites. The company received a non-refundable initial deposit of $200,000 and a commitment to fund the balance of the two million dollars by 30 October 2007.

Under the terms of the July 2007 agreement, KFA agrees to provide two million dollars per site in initial development funding. The funding will be applied towards all expenses normally incurred for CTL diesel project development including financing to closure, engineering, management, legal and operations in conjunction with preliminary site development services by KFA.

In consideration for the two million dollar funding per site, KFA will receive 7% of the annual net pre-tax income of each jointly developed CTL diesel fuel facility and 2.5% equity interest in the first CTL diesel fuel facility developed by FFI and KFA. Additionally, KFA will have the exclusive right to develop CTL diesel fuel facilities with FFI in the state of Kentucky and a conditional first right of refusal to develop CTL diesel fuel facilities in the remainder of the United States.


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